When the shipment of a number of European, American and other countries’ products to Russia was embargoed, some Armenian officials, economists and entrepreneurs announced with confidence that new opportunities for Armenian manufacturers are opened up in the Russian market. Meanwhile, the 2nd President of Armenia, Robert Kocharyan, had expressed another opinion about the Russian embargo. In the interview to Moscow-based “Noev Kovcheg” Armenian newspaper as of August 28, Mr. Kocharyan, in particular, has said, “Generally, it’s a great delusion to think that Armenia’s economy can benefit from the sanctions.” Mr. Kocharyan mentioned that, for instances, the Armenian exporters of agricultural products can significantly expand the volume of exports to Russia, but to be strengthen in the market for a long-run, they must produce quality and cost competitive products.
Chairman of Republican Union of Employers of Armenia, Gagik Makaryan, was among the first who announced that Russian sanctions provide new opportunities to Armenian producers, so Aravot.am asked Mr. Makaryan how he will comment on the 2nd president’s opinion. “Our words do not contradict each other, really, we should think about how to increase the quantity and quality. Many of our products’ quality is not bad, a number of products have international certificates. However, there are 2 ways to attract the markets of big states: either low-cost, high-quality and large quantity of goods, or the costly, less quantity, but intellectual, value added products. Let’s say, special type of organic food, special food flavors, food, but when exporting ordinary wine, soft drinks, canned food, and cognac, they must know very well that there are products there imported from Chilly, Moldova, Belarus, Turkey, and Azerbaijan, and how you can compete with them.”
Under this type of competition, according to Gagik Makaryan, the Armenian manufacturers should ensure a certain quantity because Russia is a big country and their major supermarkets have monthly consumption of Armenian quantity. And if our manufacturers do not ensure the quantity for a moment, they no longer would be interested by Russia as a partner. “So, my words and the words by the former president do not contradict each other. Yes, he is right saying that these problems should be solved. During our meeting, the Prime Minister, Hovik Abrahamyan, was trying to motivate the manufacturers, if necessary, they must increase the production volume, take loans, and the producers must be flexible, not to stay idle, work quickly, and take subsidized loans from the state,” said Mr. Makaryan.
To the question of Aravot.am of whether our producers are encouraged and interested, the economist said, “No, they are not particularly encouraged, because some manufacturers are deputies of the National Assembly, or are working under the cover of, let’s say, brotherhood, friendship, and party, and under the conditions of such “warmth”, they feel good; they are working in semi-shadow and semi-legal conditions, it is a hardship for them to start legalizing and issuing a certification for the product, they should make efforts, run back and forth, they do not want it.” Nevertheless, as said by Mr. Makaryan, there are some manufacturers who are already taking steps to be expanded in the Russian market, and the Employers’ Union supports them in finding partners.
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Nelly BABAYAN
